The trustee shall apply the proceeds of the trustee’s sale as follows:

1. (1) To the expenses of the sale, including the compensation of the trustee, and a reasonable charge by the attorney.
2. (2) To the obligation secured by the trust deed.
3. (3) To all persons having recorded liens subsequent to the interest of the trustee in the trust deed as their interests may appear in the order of their priority.
4. (4) The surplus, if any, to the grantor of the trust deed or to the successor in interest of the grantor entitled to such surplus.

[Formerly 86.765]